Aug 1, 01:19 PM

RBA's Hauser Sees Low Unemployment and Rates Falling Toward 3.2% as Fed's Bostic, Hammack, and Williams Signal Caution on U.S. Labor Market

Reserve Bank of Australia (RBA) Deputy Governor Michele Bullock Hauser reaffirmed that the trimmed mean inflation and unemployment figures remain consistent with the RBA's forecasts. Hauser noted that unemployment is very low and the labor market is near full employment. The RBA's projections assume that interest rates will gradually decline toward 3.2%, although models of the neutral rate vary and do not directly influence policy decisions. Hauser emphasized that a sharp rise in unemployment would require a policy response, but this is not the central forecast at present. Meanwhile, Federal Reserve officials have expressed caution regarding the U.S. labor market. Fed official Michael Hammack described recent jobs data as disappointing and stressed the need for careful monitoring of the labor market, which he still considers healthy and balanced. Atlanta Fed President Raphael Bostic indicated that the U.S. jobs market is slowing from strong levels, with uncertainty about how much further weakness may occur. Bostic stated that the recent jobs data likely would not have changed the Federal Open Market Committee's (FOMC) decision this week and that he still expects one interest rate cut this year, while remaining open to adjusting the Fed's stance if incoming data supports it. New York Fed President John Williams has also signaled openness to an interest rate cut ahead of the September meeting. The weakening U.S. jobs market has become a focal point in the ongoing debate over Federal Reserve rate policy.

#Reserve Bank of Australia #RBA #Michele Bullock Hauser #Hauser #Federal Reserve #Fed #Michael Hammack #Atlanta Fed #Raphael Bostic #Bostic #Federal Open Market Committee #FOMC #New York Fed #John Williams

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RBA's Hauser Sees Low Unemployment and Rates Falling Toward 3.2% as Fed's Bostic, Hammack, and Williams Signal Caution on U.S. Labor Market

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